1

TOPIC
DEFINATIONS
RESALE SALES SALES PRICE SERVICE TURNOVER OF SALES

DEFINATION OF RESALE

RESALE [Section 2 (22] : resale means as a sale of purchased goods in the same

form in which they were purchased, or without doing anything to them which amounts to, or results in a manufacture and the word resell shall be construed accordingly; Essential features of the definition are that: a. Goods must be purchased and b. The goods so purchased be sold in the same form, shape and design and character in which they were purchased.
5

EXAMPLES : ABC purchases sewing threads from a job worker, packages the same and sells them under their brand name. Will it amount to resale?
Solution : Since ABC packages the sewing threads and sells them under their brand name, it will be manufacture, and not resale.
6

DEFINATION OF SALES

SALES [Section 2 (g)] : A transfer of property in any goods for cash, deferred payment or other valuable consideration. A transfer of property in goods involved in the execution of works contract. A delivery of goods on hire purchase or any system of payment by installments. A supply of goods by any unincorporated association of persons to a member for cash, deferred payment or other valuable consideration.
8

DEFINATION OF SALES PRICE

SALES PRICE [Section 2 (25)]: Sale price means the amount of valuable consideration paid
or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery there of, other than the cost of insurance for transit or of installation, when such cost is separately charged. The sale price does not include the following, if charged separately: (a) VAT charged
(b) cost of insurance and cost of installation .

10

SERVICE

SERVICE [Section 2 (27)] : A type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. Ordinarily service is not the part of VAT, which is basically concerned with the goods. It appears that the definition is brought into the law as an enabling provision preceding proposed transition to goods and Service Tax- GST.
12

EXAMPLE
Examples of services include the transfer of goods, such as the postal service delivering mail, and the use of expertise or experience, such as a person visiting a doctor.

TURNOVER OF SALES

TURNOVER OF SALES [Section 2 (33)] : Turnover of Sales means total consideration received or receivable for any sale made after deducting the amount of: i) Sales price, if any, refunded by the seller, in respect of any goods purchased and returned by the purchaser, within a prescribed period. Ii) Deposit, if any, refunded by the seller, in respect of any goods sold by the seller, within a prescribed period.
15